By: Fraser S.B. No. 1944
A BILL TO BE ENTITLED
AN ACT
relating to the creation, operation, administration, powers,
duties, and financing of the Temple Health and Bioscience Economic
Development District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. DECLARATION OF FINDINGS AND INTENT. (a) The
creation of the Temple Health and Bioscience Economic Development
District is essential to accomplish the purposes of Section 59,
Article XVI and Section 52-a, Article III, Texas Constitution, and
other public purposes stated in this act.
(b) The creation of the district is necessary to further the
public purpose of improving the economy of the state and the City of
Temple, Texas by providing for the development of health and
biosciences operations and facilities.
(c) Article III, Section 52-a of the Texas Constitution
explicitly states that the development and diversification of the
economy of the state, the elimination of unemployment or
underemployment in the state, the stimulation of agricultural
innovation, the fostering of the growth of enterprises based on
agriculture, and the development or expansion of transportation or
commerce in the state is a public purpose, notwithstanding any
other provision of the Texas Constitution.
(d) The district is a political subdivision of the state and
serves these public purposes.
(e) Property owned by the district, which is a political
subdivision of the state, is public property.
(f) Article VIII, Section 2 (a) of the Texas Constitution
states that the legislature may, by general laws, exempt from
taxation, public property used for public purposes.
(g) This act is intended to be enabling legislation enacted
to further the public purposes under and pursuant to Article III,
Section 52-a of the Texas Constitution.
(h) This act shall be liberally construed in conformity with
the legislative findings and purposes set forth in this act.
(i) If any provision of the general law is in conflict or
inconsistent with this act, this act prevails. Any general law
which supplements the power and authority of the district, to the
extent not in conflict or inconsistent with the act, is adopted and
incorporated by reference.
SUBCHAPTER A. GENERAL PROVISIONS
SECTION 2. DEFINITIONS. In this chapter:
(a) "Board" means the board of directors of the district.
(b) "Bonds" means any type of interest-bearing obligation,
including a bond, note, bond anticipation note, certificate of
participation, lease, contract, or other evidence of indebtedness.
(c) "City" means the City of Temple, Texas.
(d) "City council" means the governing body of the City.
(e) "Director" means a member of the Board.
(f) "District" means the Temple Health and Bioscience
Economic Development District created under the provisions of this
act.
(g) "Project" means the lands, buildings, equipment,
facilities, infrastructure, and improvements found by the board to:
(1) be required or suitable for use for research and
development, invention and discovery, commercialization,
production of goods and products, development of production process
and delivery system purposes in, involved in, based upon, or
related to, or that is intended to advance the state of knowledge,
skill and understanding of, the biosciences, including, without
limitation, wet laboratories, clean rooms, research and
development facilities, facilities for the production and
manufacturing of bioscience and health products, dry laboratories,
genetics facilities and equipment, pharmaceutical facilities and
equipment, biotechnology incubators, bioscience and biotech health
care facilities, biotech facilities, bioscience facilities and
other similar projects;
(2) be required or suitable for bioscience educational
purposes, including, without limitation, bioscience/health and
biotech education facilities regardless of any affiliation with
other institutions of higher, vocational or job training education;
(3) be required or suitable for use in connection with
or in support of any of the foregoing types of health or bioscience
projects, including, without limitation, for the purposes of
providing, or providing access to, public safety facilities and
equipment, streets and roads, drainage services, waste water
services, potable water services, telecommunication facilities,
demolition of existing structures, development and institution of
water conservation programs, chilled water services, steam
services, industrial gases services, and other utility and process
and production services; or
(4) be required or suitable for support, maintenance,
or operations of logistics and distribution purposes and functions
associated with any of the foregoing.
SECTION 3. APPLICABILITY. This act applies only to the City
of Temple, Texas.
SUBCHAPTER B. CREATION OF DISTRICT AND PROVIDING FOR AN AD VALOREM
TAX
SECTION 4. APPLICATION FOR PETITION. (a) If 10 or more
qualified voters of the city file a written application, the city
secretary/elections official of the city shall issue to the
applicants a petition to be circulated among the qualified voters
of the city for the signatures of those qualified voters of the city
who desire either that a local option election be called in the city
for the purpose of determining whether to establish the district
and the levy and collection of an ad valorem tax not to exceed
fifteen cents per $100 valuation of all taxable property located
within the boundaries of the district, or that a local option
election be called in the city for the purpose of determining
whether to establish the district without the power of the district
to levy and collect an ad valorem tax.
(b) If the district is formed as provided in the act without
the power to levy and collect an ad valorem tax, then 10 or more
qualified voters of the city may file a written application with the
city secretary/elections official of the city to issue to the
applicants a petition to be circulated among the qualified voters
of the city for the signatures of those qualified voters of the city
who desire to enable the district to levy and collect an ad valorem
tax not to exceed fifteen cents per $100 valuation of all taxable
property located within the boundaries of the district.
(c) If the applicants for a petition under this section so
request, a petition expressing the desire for the local option
election to determine whether the district shall have the power to
levy and collect an ad valorem tax may also express the desire that
at the same election the district be authorized to issue bonds
payable in whole or in part from that ad valorem tax as permitted
under Section 23 of this act.
SECTION 5. HEADING, STATEMENT, AND ISSUE ON APPLICATION FOR
PETITION TO CREATE DISTRICT. (a) An application for a petition
under Section 4(a) seeking an election to establish the district
with the power to levy and collect the ad valorem tax shall be
entitled: "Application for Local Option Election Petition to
create the Temple Health and Bioscience Economic Development
District with the Power to Levy and Collect an Ad Valorem Tax not to
Exceed fifteen cents per $100 Valuation on all Taxable Property in
the District." The application shall contain a statement just
prior to the signatures of the applicants which reads substantially
as follows: "It is the hope, purpose and intent of the applicants
whose signatures appear on this petition for the Temple Health and
Bioscience Economic Development District referred to in the issue
set out above to be established and created." If the petition also
seeks an election to authorize the issuance of bonds by the district
payable in whole or in part from ad valorem taxes, then the
statement: "and to Issue Bonds Payable in Whole or in Part from Such
Ad Valorem Tax" shall be appended to the end of the title specified
in this subsection.
(b) An application for a petition under Section 4(a) seeking
an election to establish the district without the power to levy and
collect the ad valorem tax shall be entitled: "Application for
Local Option Election Petition to create the Temple Health and
Bioscience Economic Development District." The application shall
contain a statement just prior to the signatures of the applicants
which reads substantially as follows: "It is the hope, purpose and
intent of the applicants whose signatures appear on this petition
for the Temple Health and Bioscience Economic Development District
referred to in the issue set out above to be established and
created."
(c) If the district initially is created without ad valorem
taxing authority, an application for a petition under Section 4(b)
seeking an election to enable the district to levy and collect an ad
valorem tax not to exceed fifteen cents per $100 valuation of all
taxable property located within the boundaries of the district
shall be entitled: "Application for Local Option Election Petition
to Enable the Temple Health and Bioscience Economic Development
District to Levy and Collect an Ad Valorem Tax not to Exceed fifteen
cents per $100 Valuation on all Taxable Property Located within the
Boundaries of the District." The application shall contain a
statement just prior to the signatures of the applicants which
reads substantially as follows: "It is the hope, purpose and intent
of the applicants whose signatures appear on this petition for the
Temple Health and Bioscience Economic Development District to be
enabled to levy and collect an ad valorem tax not to exceed fifteen
cents per $100 valuation of all taxable property located within the
boundaries of the district." If the petition also seeks an election
to authorize the issuance of bonds by the district payable in whole
or in part from ad valorem taxes, then the statement: "and to Issue
Bonds Payable in Whole or in Part from Such Ad Valorem Tax" shall be
appended to the end of the title specified in this subsection.
(d) Each petition shall show the date it is issued by the
city secretary/elections administrator and be serially numbered.
Each page of a petition shall bear the same date and serial number.
SECTION 6. COPIES OF PETITION. The city
secretary/elections administrator shall supply as many copies of
the petition as may be required by the applicants but not to exceed
more than one page of the petition for every 10 registered voters in
the city. Each copy shall bear the date, number, and seal on each
page as required on the original petition.
(a) The city secretary/elections administrator shall keep a
copy of each petition and a record of the applicants for that
petition.
SECTION 7. FILING AND VERIFICATION OF PETITION. At any time
prior to the expiration of 120 days following the date on which a
petition is issued by the city secretary/elections administrator
pursuant to Section 5, the applicants requesting the petition may
file a request with the city secretary/elections administrator of
the city for the petition to be verified under subsection (b)
following.
If a request for verification of a petition is timely made
under subsection (a) preceding, the city secretary/elections
administrator shall examine the names of the signers of petitions
and determine whether the signers of the petition were qualified
voters of the city at the time the petition was issued. The city
secretary/elections administrator shall certify to the city
council the number of qualified voters signing the petition not
later than 15 days following the date the request for verification
was filed with the city secretary/elections administrator under
paragraph (a) preceding.
(a) No signature may be counted, either by the city
secretary/elections administrator or city council, where there is
good reason to believe that:
(1) it is not the actual signature of the purported
signer;
(2) the voter registration certificate number is not
correct;
(3) it is a duplication either of a name or of
handwriting used in any other signature on the petition; or
(4) the residence address of the signer cannot be
verified.
SECTION 8. REQUIREMENTS TO ORDER ELECTION. The city
council, not later than the second regular session to be convened
next after a petition has been verified by the city
secretary/elections administrator under Section 7, shall order a
local option election (in accordance with the Election Code when
not inconsistent with this act) to be held on the issue set out in
the petition, if the petition is submitted for verification to the
city secretary/registrar of voters not later than 120 days after
the date it was issued and contains the following:
the actual signatures of a number of qualified voters of the
city equal to at least 10% percent of the registered voters of the
city who voted in the most recent general election in the city;
(a) a notation showing the residence address of each of the
signers;
(b) each signer's voter registration certificate number;
and
(c) each signer's printed name.
The dates a petition is presented to and verified by the city
secretary/elections administrator, the names of the signers, and
the action taken with respect to the petition shall be entered in
the minutes of the city council.
SECTION 9. NOTICE AND CONDUCT OF ELECTION. If the
requirements to order an election are met, the city council shall
give notice of an election to be held under this act on the issue set
out in the verified petition by publishing a substantial copy of the
election ordinance once a week for two consecutive weeks in a
newspaper with general circulation in the city. The first
publication must appear before the 14th day before the date set for
the election. If the election ordinance includes the issue of
whether the district shall be authorized to issue bonds as provided
in Section 23 of this act, then the first publication must appear
before the 31st day before the date set for the election.
The ordinance calling the election must:
(1) define the boundaries of the district to be the
boundaries of the city as the boundaries of the city are adjusted
from time to time by the city; and
(2) call for the election to be held within those
boundaries.
(b) The ballot at an election held under this section must
be printed to permit voting for or against the proposition set forth
below that was covered by the verified petition:
(1) "Authorizing the establishment and creation of the
Temple Health and Bioscience Economic Development District and the
levy and collection of an ad valorem tax not to exceed the rate of
fifteen cents per $100 valuation of all taxable property located
within the boundaries of the district, all as provided in Chapter
_____, Acts of the 78th Legislature of the State of Texas."
(2) "Authorizing the establishment and creation of the
Temple Health and Bioscience Economic Development District and the
levy and collection of an ad valorem tax not to exceed the rate of
fifteen cents per $100 valuation of all taxable property located
within the boundaries of the district and to issue bonds payable in
whole or in part from such ad valorem tax, all as provided in
Chapter _____, Acts of the 78th Legislature of the State of Texas."
(3) "Authorizing the establishment and creation of the
Temple Health and Bioscience Economic Development District, all as
provided in Chapter _____, Acts of the 78th Legislature of the State
of Texas."
(4) "Authorizing the levy and collection of an ad
valorem tax not to exceed the rate of fifteen cents per $100
valuation of all taxable property located within the boundaries of
the district, all as provided in Chapter _____, Acts of the 78th
Legislature of the State of Texas."
(5) Authorizing the levy and collection of an ad
valorem tax not to exceed the rate of fifteen cents per $100
valuation of all taxable property located within the boundaries of
the district and to issue bonds payable in whole or in part from
such ad valorem tax, all as provided in Chapter _____, Acts of the
78th Legislature of the State of Texas."
(c) The district is established and created if a majority of
the registered voters of the proposed district voting at the
election favor establishment and creation of the district. The
authority of the district to levy and collect an ad valorem tax not
to exceed the rate of fifteen cents per $100 valuation of all
taxable property located within the boundaries of the district is
established if a majority of the registered voters of the district
voting at the election favor its levy and collection. The authority
of the district to issue bonds payable wholly or partially from ad
valorem taxes is established if a majority of the registered voters
of the district voting at the election favor such authorization.
(d) If a majority of the registered voters of the proposed
district voting at the election to establish and create the
district vote against establishing and creating the district,
another election on the question of establishing and creating the
district may not be held in the city before the first anniversary of
the date of the most recent election concerning the establishment
and creation of a district. If a majority of the registered voters
of the district voting at the election to establish the power of the
district to levy and collect an ad valorem tax vote against
establishing such power, another election on the question of
establishing such power may not be held in the city before the first
anniversary of the date of the most recent election concerning the
establishment of the power of the district to levy and collect such
ad valorem tax. If a majority of the registered voters of the
district voting at the election to authorize the district to issue
bonds payable wholly or partially from ad valorem taxes vote
against such authorization, another election on the question of
authorizing the district to issue bonds payable wholly or partially
from ad valorem taxes may not be held in the city before the first
anniversary of the date of the most recent election concerning
authorizing the district to issue bonds payable wholly or partially
from ad valorem taxes.
(e) If not inconsistent with this act, the Election Code
governs elections held under this section.
(f) An election provided under this section shall be held on
the earliest of the four uniform election dates under Section
41.001, Election Code, to occur following the adoption of the
ordinance calling the election by the city council that is eligible
for the election to be held.
SECTION 10. POLITICAL SUBDIVISION. The district is a
political subdivision, a body politic and corporate, and a public
agency of this state. For the purposes of Chapter 101 of the Civil
Practices and Remedies Code, the district is a governmental unit
and its actions are governmental functions.
(a) No director or employee of the district shall be liable
for damages arising from the performance of a governmental function
of the district.
SUBCHAPTER C. BOARD OF DIRECTORS
SECTION 11. ELECTION, COMPOSITION, AND APPOINTMENT OF
BOARD. A district is governed by a board of seven directors.
(a) If the voters approve the establishment and creation of
the district, a temporary board shall be appointed, by resolution
of the city council, to serve until the first election of directors.
The resolution by the city council shall also divide the appointed
directors into two groups: one group serves up to a four-year term
and the other group serves up to a three-year term, with the actual
terms to be until their respective successors are duly elected and
take office in accordance with this act.
(b) Elections of directors shall be held on the same
election day as that on which members of the city council are
regularly to be elected, with four directors to be elected on the
election day on which the mayor of the city is to be regularly
elected and with three directors to be elected on the election day
on which members of the city council, but not the mayor of the city,
are to be regularly elected. The first election of directors shall
occur on the next regular election day on which members of the city
council are to be elected at an election held at least twelve months
following the date of the creation of the district.
(c) Directors (other than the temporary directors appointed
under section) shall serve staggered three-year terms and are to be
elected in accordance with the Election Code to the extent not
inconsistent with the other provisions of this act.
(d) To qualify to serve as a director, a person must be a
registered voter of the city. No employee of the district or the
city nor any elected official may serve as a director.
SECTION 12. BOARD VACANCY. A vacancy in the office of
director shall be filled by appointment of a new director by the
board. Such appointed director shall serve until the next regular
election of any director of the district, at which election, in
addition to the director or directors otherwise to be elected at
that time, a director to fill the balance of the term of the
director as to which a vacancy occurred shall also be elected.
SECTION 13. DIRECTOR'S BOND AND OATH. As soon as
practicable after a director is elected or appointed, as the case
may be, the director shall execute a $10,000 bond payable to the
district and conditioned on the faithful performance of the
director's duties.
(a) Each director's bond must be approved by the board, and
each director shall take the oath of office prescribed by the Texas
Constitution for public officers.
(b) The bond and oath shall be filed with the district and
retained in its records.
SECTION 14. COMPENSATION. A director shall serve without
compensation, but is entitled to reimbursement for actual and
necessary expenses approved by the board.
SECTION 15. BOARD OFFICERS. The board shall designate from
the members of the board a presiding officer, a secretary, and such
other officers the board considers necessary. By order the board
shall establish the duties and powers of the officers of the board,
subject to the provisions of this act.
SECTION 16. MEETINGS AND NOTICE; OPEN MEETINGS. The board
may establish regular meetings to conduct the business of the
district and may hold special meetings at other times as the
business of the district requires.
(a) Notice of the time, place, and purpose of a meeting of
the board shall be given by posting the notice at a place convenient
to the public in the district. A copy of the notice shall be
furnished to the city secretary, who shall post it at the usual
location at which the posting of notices of meetings of the city
council are posted.
(b) Except as otherwise provided by this act, Chapter 551,
Government Code, applies to the meetings of the board. Any
interested person may attend any meeting of the board.
SECTION 17. MANAGEMENT OF DISTRICT. The board has control
over and shall manage the affairs of the district and shall employ
any person, firm, partnership, or corporation the board considers
necessary for conducting the affairs of the district, including,
but not limited to, engineers, attorneys, financial advisors,
economist, a general manager, a utility operator, bookkeepers,
auditors, and clerical workers.
(a) The board shall determine by resolution the term of
office and the compensation of any employee of the district and the
terms of any contract with a consultant, advisor or counselor.
(b) The board may remove any employee.
(c) The board may require an officer or employee to execute
a bond payable to the district and conditioned on the faithful
performance of the person's duties.
SECTION 18. DISTRICT OFFICE. The board shall designate and
establish an office of the district in the city.
SECTION 19. SUITS. A district, after it is created and
confirmed, through its directors, may sue and be sued in any court
of this state in the name of the district. Service of process in any
suit may be made by serving any two directors. The district may
institute and prosecute suits without giving security for costs,
and may appeal from a judgment without giving supersedeas or cost
bond.
SECTION 20. EXPENDITURES. The board by resolution shall
establish the number of directors' signatures and the procedures
required for a disbursement or transfer of the district's funds.
SUBCHAPTER D. POWERS AND DUTIES
SECTION 21. GENERAL POWERS OF DISTRICT. The district has
the powers, necessary or convenient:
(1) to carry out and effect the purposes and
provisions of this act and to perform any act necessary or
convenient to the full exercise of the district's powers, including
the powers granted in this section ;
(2) to make and enter contracts, leases, and
agreements with, and accept contributions, grants and loans from,
a:
(A) department or agency of the United States and
its departments and agencies;
(B) the state and its departments and agencies,
any counties, municipalities, college districts, school districts,
and any other political subdivisions of this state or nonprofit
organizations; and
(C) any colleges, universities, or other
educational institutions and any other person, public or private;
(3) to establish and provide for the administration of
one or more programs, including programs for making loans and
grants of public money and providing personnel and services of the
district, to promote state or local economic development and to
stimulate business and commercial activity in the district that
relates to a project;
(4) to do any of the following:
(A) administer a project related program by the
use of district personnel;
(B) contract with any department or agency of the
United States or its departments and agencies; the state and its
departments and agencies, any counties, municipalities, college
districts, school districts, and any other political subdivisions;
and nonprofit organizations, or any other person or entity for the
administration of a project related program; and
(C) accept contributions, gifts, or other
resources to develop, support or administer a project related
program;
(5) to create programs for the grant of public money to
any organization exempt from taxation under Section 501(a) of the
Internal Revenue Code of 1986 (the "Code") as an organization
described in Section 501(c)(3) of the Code for the public purposes
of development and diversification of the economy of the state,
elimination of unemployment or underemployment in the state, and
development or expansion of commerce in the state that relate to a
project. The grants must be in furtherance of those public purposes
and shall be used by the recipient as determined by the recipient's
governing board for project related programs found by the district
to be in furtherance of this section and under conditions
prescribed by the district;
(6) to levy a special assessment or a non-ad valorem
tax on property or other property interests including leasehold
interests by agreement of the property owner;
(7) to acquire, sell, convey, lease as lessor or
lessee, or otherwise acquire or dispose of property or any interest
in property (whether real, personal or mixed) in the district or for
use in the district, including a project located in the district,
under terms and conditions determined by the board;
(8) to employ necessary personnel;
(9) to invest funds of the district in any investments
authorized by Chapter 2256, Government Code, as amended, and
provide, by resolution, that an authorized representative manage
the district's funds and invest and reinvest the funds of the
district on terms the board considers advisable;
(10) to establish a complete system of accounts for
the district and each year shall have prepared an audit of the
district's affairs, which shall be open to public inspection, by an
independent certified public accountant or a firm of independent
certified public accounts;
(11) to designate one or more financial institutions
to serve as the depository bank or banks for the district;
(12) to incur liabilities, borrow money on terms and
conditions the board determines, and issue bonds or other
obligations;
(13) to establish and maintain reasonable and
nondiscriminatory rates, fares, charges, rents, or other fees or
compensation for the use of the improvements constructed, operated,
or maintained by the district;
(14) to adopt a seal for the district;
(15) to establish a fiscal year for the district; and
(16) to adopt rules to govern the operation of the
district and its employees and property.
(b) The district may contract with a public or private
entity or person to:
(1) plan, operate, manage, maintain, acquire,
establish, develop, construct, renovate, equip, repair or alter a
project located in the district; or
(2) perform any other act the district is authorized
to perform under this act including operations and maintenance of a
project in the district.
(c) The board by resolution may authorize the creation of a
nonprofit corporation pursuant to the Texas Non-Profit Corporation
Act, including, without limitation, a scientific research
corporation, to assist and act on behalf of the district in
implementing a project or providing a service authorized by this
act. Any nonprofit corporation created by the board shall be
subject to the following:
(1) The board shall appoint the board of directors of a
nonprofit corporation created under this section and may include
the appointment of the board of the district as the board of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as, for the same term as,
and on the conditions of the board of directors of a local
government corporation created under Chapter 431, Transportation
Code.
(2) A nonprofit corporation created under this section
has the powers of and is considered for purposes of this subchapter
to be a local government corporation created under Chapter 431,
Transportation Code.
(3) A nonprofit corporation created under this section
may implement any project and provide any services authorized by
the district.
(d) Annually, the board shall engage by written agreement
the services of a certified public accountant or a certified public
accounting firm to perform an audit of the financial records of the
district. Annually, the report and accompanying statements
prepared by such auditor shall be delivered to the district and
shall be made available by the district to citizens of the city upon
request.
SECTION 22. PROJECT FUND. The district shall establish by
resolution a fund known as the project fund. The district may
establish separate accounts within the project fund.
(a) The district shall deposit into the project fund:
(1) the proceeds from any ad valorem tax levied by the
district;
(2) subject to the provisions of any order or
indenture authorizing the sale of bonds or other obligations, all
revenue from the sale of bonds or other obligations by the district;
(3) any other money acquired or received by the
district; and
(4) any other money required by law to be deposited in
the project fund.
(b) The district may use money in the project fund to:
(1) pay the costs of planning, acquiring,
establishing, developing, constructing, maintaining, operating,
repairing, altering, equipping, or renovating one or more projects
in the district;
(2) pay the principal of, interest on, and other costs
relating to bonds or other obligations issued by the district or to
refund these bonds or other obligations; or
(3) pay the costs of operating or maintaining one or
more projects in the district during the planning, acquisition,
establishment, development, construction, operation, repairing,
altering, equipping, or renovation or while bonds or other
obligations of the district are outstanding.
SECTION 23. BONDS AND OTHER OBLIGATIONS. The district may
issue bonds, including revenue bonds and refinancing and refunding
bonds, or other obligations to pay the costs of a project located in
the district.
(1) The bonds or other obligations and the proceedings
authorizing the bonds or other obligations shall be submitted to
the attorney general for review and approval as required by Chapter
1202, Government Code. If the Attorney General finds that the bonds
have been authorized and any assessment, contract, or lease has
been made in accordance with law, the Attorney General shall
approve the bonds and the assessment, contract or lease, and the
bonds shall be registered by the comptroller. After approval and
registration, the bonds and any assessment, contract, or lease
relating thereto are incontestable in any court or other forum for
any reason and are valid and binding obligations of the district for
all purposes in accordance with their terms.
(2) The bonds or other obligations may be payable from
and may be secured by lien on and pledge of the gross or net revenues
of a project or all or a portion of the revenues of the district.
(3) The bonds or other obligations may mature,
serially or otherwise, not more than 40 years from their date of
issuance.
(4) Bonds issued under Section 23(a)(2) are not an
obligation or a pledge of the faith and credit of this state,
another political subdivision of this state, or an agency of this
state. Each bond must contain on its face a statement that neither
the faith and credit nor the taxing power of this state, or another
political subdivision of this state is pledged to the payment of the
principal of or the interest on the bonds.
(5) Bonds issued under this act may be sold in any
manner authorized by the district and permitted by Chapter 1201,
Government Code.
(6) The interest rate on the bonds may be determined by
a formula or index or in accordance with a contract or other
arrangement for the periodic determination of interest rates all as
provided by the provisions of Chapter 1204, as amended, Government
Code.
(7) The proceeds of the bonds of the district may be
used to:
(A) finance, refinance, or provide one or more
projects;
(B) maintain reserve funds determined by the
district to be necessary and appropriate; or
(C) pay any costs relating to the issuance or
incurrence of bonds by the district including:
(i) the cost of:
(1) financing charges and capitalized
interest on the bonds;
(2) financing, legal, accounting,
financial advisory, and appraisal fees, expenses, and
disbursements;
(3) an insurance policy;
(4) printing, engraving, and
reproduction services;
(5) the initial and acceptance fees of
a trustee, paying agent, bond registrar, or authenticating agent;
and
(6) a credit agreement, as defined in
Chapter 1371, as amended, Government Code; and
(ii) reasonable amounts to reimburse the
district for time spent by its agents or employees with respect to
the issuance, incurrence, or purchase.
(b) Revenue bonds may be additionally secured by a mortgage
or deed of trust on real property relating to the facilities
authorized under this act owned or to be acquired by the district
and by chattel mortgages, liens, or security interests on personal
property appurtenant to that real property. The board may
authorize the execution of trust indentures, mortgages, deeds of
trust, or other forms of encumbrance to evidence the indebtedness.
(c) The board may pledge to the payment of the bonds all or
any part of any grant, donation, revenues, or income received or to
be received from the United States government or any other public or
private source.
(d) Bonds payable in whole or in part from ad valorem taxes
may not be issued unless approved by a majority vote of the
qualified voters of the district voting in an election held for that
purpose.
(1) Elections shall be called and held as provided by
the appropriate provisions of this act and the Election Code.
(2) The district shall impose an ad valorem tax as
permitted by this act if the bonds are payable wholly or partly from
ad valorem taxes.
(3) A bond election and any other election may be held
at the same time and in conjunction with any other election.
(4) Bonds payable from sources other than ad valorem
taxes may be issued by the district without approval at an election.
(5) A district may not authorize bonds secured in
whole or in part by ad valorem taxes unless a majority of the
district's qualified voters who vote at an election ordered for
that purpose approve the issuance of the bonds.
(6) The board may order an election on the bonds if the
bonds are not payable wholly or partially from ad valorem taxes.
The order must contain the same information contained in the notice
of the election.
(7) The board shall publish notice of the election at
least once in a newspaper of general circulation in the district.
The notice must be published not later than the 31st day before
election day.
(8) In addition to the contents of the notice required
by the Election Code, the notice must state:
(A) the amount of bonds to be authorized; and
(B) the maximum maturity of the bonds.
(9) At an election to approve bonds payable wholly
partially from ad valorem taxes that is not provided for in Section
9 of this act, the ballots must be printed to provide for voting for
or against the following: "The issuance of bonds and the levy of
taxes adequate to provide for payment of the bonds."
(10) At an election to approve bonds payable from both
ad valorem taxes and revenues that is not provided for in Section 9
of this act, the ballots must be printed to provide for voting for
or against the following: "The issuance of bonds and the pledge of
revenues and the levy of ad valorem taxes adequate to provide for
the payment of the bonds."
(e) The district shall be classified as an "Issuer" with the
ability to incur an "Obligation" pursuant to the provisions of an
"Obligation authorization" each as defined in Chapter 1371, as
amended, Government Code.
(f) The district's bonds are legal and authorized
investments for:
(1) banks, trust companies, financial institutions,
and savings and loan associations;
(2) insurance companies;
(3) fiduciaries, trustees, and guardians; and
(4) all interest and sinking funds and other public
funds of the state and agencies, subdivisions, and
instrumentalities of the state, including counties,
municipalities, towns, villages, school districts, and all other
kinds and types of districts, public agencies, and bodies politic.
(g) The district's bonds are eligible and lawful security
for deposits of counties, municipalities, towns, villages, school
districts, and all other kinds and types of districts, public
agencies, and bodies politic, to the extent of the market value of
the bonds, when accompanied by any unmatured interest coupons
appurtenant to the bonds.
SECTION 24. PROJECTS ARE HELD FOR PUBLIC PURPOSES. The
legislature finds for all constitutional and statutory purposes
that a project which is owned by the district is held for public
purposes.
SUBCHAPTER E. AD VALOREM TAX
SECTION 25. LEVY OF AD VALOREM TAX. The district by order
may impose an ad valorem tax not to exceed fifteen cents per $100
valuation on all non-exempt property located in the district.
A district may impose an ad valorem tax under this act only if
the levying and collection of the ad valorem tax provided in this
act is approved at an election held under Section 9 of this act.
SECTION 26. TAX CODE APPLICABLE. The Tax Code governs the
appraisal, assessment, computation, administration, collection,
and remittance of any ad valorem tax authorized under this act.
The board may provide for the appointment of a tax
assessor-collector for the district or may contract for the
assessment and collection of taxes as provided in the Tax Code.
SECTION 27. TAX RATE. The rate of tax levied under this act
shall be at the rate approved by the board; however, such rate must
be not more than fifteen cents per $100 valuation on all taxable
property in the district. The board may change the rate of tax from
time to time, consistent with the obligations of the district;
provided, that in no event shall the rate of tax exceed fifteen
cents per $100 valuation of all taxable property in the district.
SECTION 28. DEPOSIT OF TAX REVENUES. Revenue from the ad
valorem tax imposed under this act shall be deposited in the project
fund of the district.
SUBCHAPTER F. COMPETITIVE BIDDING
SECTION 29. COMPETITIVE BIDDING. Sections 375.221 and
375.223 of the Local Government Code apply to a district created
under this chapter.
SECTION 30. EXEMPTION. Notwithstanding any other provision
of this act to the contrary, any contract between the district and a
governmental entity or nonprofit corporation including a
scientific research corporation and a corporation created under the
Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
Civil Statutes) is not subject to the competitive bidding
requirements of this chapter.
SUBCHAPTER G. DISSOLUTION OF DISTRICT
SECTION 31. DISSOLUTION OF DISTRICT. A district may be
dissolved only as provided by this act.
SECTION 32. DISSOLUTION BY ORDER OF CITY COUNCIL. The board
may petition the city council to dissolve the district if a majority
of the board finds at any time:
(1) before the issuance of bonds or other obligations
of the district that the purposes of the district are impracticable
or reasonably and economically cannot be successful or
accomplished; or
(2) that all bonds and other obligations of the
district have been paid (or provisions for payment have been made)
and the purposes of the district have been accomplished.
(b) On receipt of a petition from the board for the
dissolution of the district, the city council shall hold a public
hearing on the dissolution of the district.
(c) If the city council unanimously determines that the best
interests of the city and the citizens of the city will be served by
dissolving the district, the city council shall enter in its
records the appropriate findings and order dissolving of the
district. Otherwise, the city council shall enter its order
providing that the district has not been dissolved. On dissolution
of the district, funds and property of the district, if any, shall
be transferred to the city and the city shall assume any remaining
contracts or other obligations of the district.
SECTION 33. DISSOLUTION OF DISTRICT ON AGREEMENT WITH THE
CITY. The district may be dissolved at any time by agreement
between the city council of the city and the board. The agreement
shall require the city to acquire all of the money, property, and
other assets of the district and assume all contracts, debts,
bonds, and other obligations of the district, and the city shall be
bound in the same manner and to the same extent that the district
was bound with respect to those contracts, debts, bonds, and other
obligations. On dissolution of the district, the taxes levied by
the district are abolished.
SECTION 34. SEVERABILITY. Nothing in this act shall be
construed to violate any provision of the federal or state
constitution, and all acts done under this act shall be in such
manner as will conform thereto, whether expressly provided or not.
Where any procedure hereunder may be held by any court to be
violative of either of such constitutions, the district shall have
the power by order to provide an alternative procedure that
conforms to such constitutions. If any provisions of this act
should be invalid, such fact shall not affect the validity of any
other provisions of this act, and the legislature hereby declares
that it would have enacted the valid provisions of this act
notwithstanding the invalidity of any other provision or provisions
hereof.